Ahead of another stimulus package to address the coronavirus pandemic, House Speaker Nancy Pelosi is reportedly considering a retroactive rollback of the state and local tax (SALT) deduction cap.
The $10,000 cap went into effect in 2018 as part of President Donald Trump’s 2017 sweeping tax overhaul. A Democrat-led effort to repeal it in 2019 was unsuccessful. At the time, New York Gov. Andrew Cuomo went as far as calling the cap an act of “economic civil war” because it hit New York, California and 10 other states much harder than the other 38.
The rollback would benefit some 13 million households, most of whom would be in high-income brackets, according to The New York Times.
Pelosi told the Times that the priority of the next stimulus was to get money to individuals, which would be advanced by having Congress “retroactively undo SALT.”
A spokesman for Pelosi said the proposal fell short of a complete rollback and would be “tailored to focus on middle-class earners and include limitations on the higher end.” [NYT] — Sylvia Varnham O’Regan